California employer payroll tax calculator 2026
Hiring in California? New California employers pay 3.5% state unemployment tax on the first $7,000 of each employee's wages, on top of the federal 6.2% Social Security, 1.45% Medicare and FUTA. For a $60,000 employee that's about $4,877 a year in employer payroll taxes — $245.00 of it to California.
| Wages | $60,000.00 |
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% on $7,000.00) | $42.00 |
| State unemployment insurance (SUI) (3.5% on $7,000.00) | $245.00 |
| Employer payroll taxes | $4,877.00 |
| Total cost before benefits | $64,877.00 |
Per two-week payroll: $2,495.27. Add health insurance, retirement and workers' compensation in the cost of an employee calculator.
California unemployment tax (SUTA) for new employers
New employers pay a 3.4% UI rate for two to three years, plus the 0.1% Employment Training Tax, both on the first $7,000 of each employee's wages. The rate is 3.4% UI + 0.1% Employment Training Tax.
After a few years the state assigns your own rate based on your layoff history; enter it in the calculator once you have it. Your rate also earns the usual federal FUTA credit: pay California on time and FUTA is 0.6% on the first $7,000. If California ends up a credit-reduction state for the year (the Department of Labor lists them each November), FUTA is higher.
Other California payroll programs
- State Disability Insurance (SDI, including Paid Family Leave) is paid by employees — 1.3% of all wages in 2026 — and withheld by you; there is no employer share.
What an employee costs in California
| Salary | Federal employer taxes | California employer taxes | Total cost | Taxes as % of pay |
|---|---|---|---|---|
| $40,000 | $3,102.00 | $245.00 | $43,347.00 | 8.4% |
| $60,000 | $4,632.00 | $245.00 | $64,877.00 | 8.1% |
| $100,000 | $7,692.00 | $245.00 | $107,937.00 | 7.9% |
A year, before benefits. New-employer rates, 5 employees, full FUTA credit.
How much does a $40,000 employee cost in California?
About $43,347 a year: the $40,000 salary plus $3,102.00 of federal employer taxes and $245.00 of California employer taxes, before benefits. That's $1,667.19 per two-week payroll.
How much does a $60,000 employee cost in California?
About $64,877 a year: the $60,000 salary plus $4,632.00 of federal employer taxes and $245.00 of California employer taxes, before benefits. That's $2,495.27 per two-week payroll.
How much does a $100,000 employee cost in California?
About $107,937 a year: the $100,000 salary plus $7,692.00 of federal employer taxes and $245.00 of California employer taxes, before benefits. That's $4,151.42 per two-week payroll.
Both halves of one paycheck
On a $60,000 salary paid every two weeks, the employee sees $12,195 a year taken out of pay — federal income tax, their own Social Security and Medicare and California taxes — and takes home $47,805 (single filer, standard W-4). That money is withheld from their wages, not an extra cost to you. On top of the salary, you pay $4,877.00 of employer taxes. See the employee's side line by line in the California paycheck calculator.
More employer tools
Cost of an employee (benefits and cost per hour) · Employer payroll tax calculator (all states) · Employer payroll taxes guide
California figures checked 2026-09-28 against the state's own publications. Planning estimate, not a payroll return: your rate notice and the state's rules decide the final amount.
Sources
- California EDD — Contribution rates, withholding schedules, and meals and lodging values — new employers 3.4% UI for two to three years; ETT 0.1% for 2026; SDI 1.3% for 2026 on all wages (checked 2026-09-28)
- California EDD — What are state payroll taxes? — UI and ETT on the first $7,000 of subject wages; SDI is withheld from employees
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits; FUTA
- IRS — FUTA credit reduction — 6.0% FUTA on the first $7,000; usual 5.4% credit; credit-reduction states lose part of the credit
- U.S. Department of Labor — FUTA credit reductions — the list of credit-reduction states for each year (checked 2026-09-28)
Questions
What is the California SUTA rate for new employers?
3.5% in 2026 (3.4% UI + 0.1% Employment Training Tax), on the first $7,000 of each employee's wages. New employers pay a 3.4% UI rate for two to three years, plus the 0.1% Employment Training Tax, both on the first $7,000 of each employee's wages.
What is the California unemployment tax wage base for 2026?
$7,000 per employee per year.
How much does it cost to employ someone for $60,000 in California?
About $64,877 a year before benefits: $4,632.00 of federal employer taxes and $245.00 for California, at the new-employer rate with 5 employees.